Trading returned to stabilize below the SMA 20 & 50, and we can see that RSI is trading negatively. The suggested harmonic pattern above is not ideal, though in many cases the effect was still seen for patterns where the CD extended to near point X. As we mentioned yesterday, there is also a bearish classic formation which pushed the pair south. The pair is currently trading around the 38.2% correction of CD leg of the harmonic pattern and breaching this level might take the pair towards 50% and then 61.8% correction at 0.8500 and 84.60 respectively. Therefore, we expect a bearish more today as far as the pair does not return to stabilize above 0.8635. Stochastic is overbought which might increase the volatility and fluctuations for now.
The trading range for today is among the key support at 0.8365 and key resistance now at 0.8700.
The general trend over short term basis is to the downside targeting 0.7780 as far as areas of0.8965remain intact.
|Recommendation||Based on the charts and explanations above, our opinion is selling the pair around 0.8540 targeting 0.8460 and stop loss with four-hour closing above 0.8590 might be appropriate today|